The United States and Switzerland reaffirmed their commitment to avoid currency manipulation in a joint statement released September 29, pledging not to target exchange rates for competitive advantage.
The renewed understanding comes as global economic tensions persist over trade imbalances and currency valuations. Switzerland’s history of foreign exchange interventions has drawn scrutiny from trading partners.
The Swiss National Bank pledged its monetary policy “will remain oriented towards maintaining appropriate monetary conditions to safeguard price stability and will not target exchange rates for competitive purposes.” Washington made identical commitments regarding U.S. fiscal and monetary policies.
Both countries agreed intervention in foreign exchange markets remains acceptable for addressing “excessively volatile or disorderly depreciation or appreciation.” This shared view provides flexibility during currency crises.
The agreement extends beyond central bank activities. Both nations committed that macroprudential measures, capital flow policies, and government pension fund investments abroad won’t target exchange rates.
Transparency measures include quarterly disclosure of foreign exchange interventions and monthly reporting of reserves data. Countries will also reveal currency composition of reserves quarterly.
The Treasury Department, Swiss Federal Department of Finance, and Swiss National Bank issued the statement following their Standing Macroeconomic and Financial Dialogue. Both nations operate under International Monetary Fund articles prohibiting currency manipulation.
The agreement signals continued cooperation between Washington and Bern on monetary matters. Both nations seek to maintain stable exchange rates through domestic policy tools rather than direct market intervention.